Reddit (RDDT) has embarked on a new venture by introducing Reddit Answers, an AI-powered feature designed to delve into the vast repository of user-generated content on its platform to respond to queries directly. According to Reuters, this initiative aims to enhance user experience by simplifying the retrieval of information already shared within Reddit’s communities, while simultaneously positioning Reddit as a competitive player against search engines and emerging AI services like those from OpenAI and Perplexity.
Reddit Answers functions by compiling and presenting curated summaries from relevant conversations and posts across Reddit. When a user poses a question, the system not only provides an answer but also includes links to the community discussions and posts where the information is sourced from, thereby encouraging deeper engagement with the platform’s content. This feature underscores Reddit’s commitment to leveraging AI not just for content moderation but now for enhancing its search capabilities.
Initially, Reddit Answers will be available only in English and accessible to a select group of users in the United States. The plan is to broaden access to more users and support additional languages as the testing phase progresses. This strategic move is part of Reddit’s broader effort to evolve its platform, making it more user-friendly and information-rich.
The introduction of this feature comes at a time when Reddit has reported significant growth. In the third quarter, Reddit saw a 47% year-over-year increase in daily active unique visitors, reaching 97.2 million, alongside a 14% rise in global average revenue per user (ARPU) to $3.58. This growth suggests that enhancing user interaction with AI could further propel engagement, potentially increasing both user numbers and the platform’s monetization opportunities.
By harnessing its own content through AI, Reddit aims to reduce reliance on external search engines for traffic, offering users a more seamless experience where they can find answers without leaving the site. This could also encourage more detailed and frequent content contributions, knowing that their input could directly impact the answers provided to queries. As AI continues to reshape how information is accessed and processed on social platforms, Reddit’s move with Reddit Answers is a clear indication of its intent to stay at the forefront of this technological shift.
Price Action: RDDT is currently trading at $157.41, experiencing a decline of $5.35, or 3.25%, intraday. Despite this dip, Reddit’s stock has performed exceptionally well in recent months, rising 24% over the last month and an impressive 178% over the past three months.
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